1982.04.30
MINISTRY OF FINANCE
ANNOUNCEMENT OF CHINESE MINISTRY OF FINANCE ON TAXATION ON
REVENUE OF FOREIGN FREIGHT AND PASSENGER SHIPS
(Issued by the Ministry of Finance on April 30, 1982)
With the promulgation of the Income Tax Law of the PRC Concerning
Foreign Enterprises and detailed rules and regulations for its
implementation, regulations for taxation on the transportation
incomes of vessels of foreign nationalities should be changed
accordingly. To facilitate the implementation, an announcement is
hereby made:
@@ (1) The income tax of a foreign ship from freight and
passenger transport shippings in Chinese ports should be paid
according to the provisions of the Income Tax Law Concerning
Foreign Enterprises. And according to Article 25 of the detailed
rules and regulations for the implementation of the above law, five
per cent of the total revenue of a foreign ship from freight and
passenger transport shippings in Chinese ports will be considered
taxable income. It is calculated that for a foreign ship
producing revenue of less than Rmb five million in each shipment
the total tax burden will be 4.024% of the total revenue. This
includes 1% for income tax, 0.5% for local income tax, 2.5%
for consolidated industry and commercial tax plus 0.025% for local
surtax. In order to simplify the procedures for the collection of
taxes as mentioned above, the rate for the overall tax burden shall be
used.
@@ (2) According to Article 14 of the Foreign Enterprise Income
Tax Law, in the event that the income tax and the local income
tax are not paid within the prescribed time limit, a fine of 0.5% of
the overdue tax payment will be imposed on a daily basis.
@@ (3) The "Regulations for Taxation on the Transportation
Incomes of Vessels of Foreign Nationalities", promulgated on June
21, 1974, will remain in force as far as tax declaration, reduction
and exemption and the handling of defaults are concerned.